Lower Crude Prices Affect Global Politics

Opec OilAndrew Critchlow, Commodities Editor for “The Telegraph”, wrote a wonderful article entitled “Sun sets on Opec dominance in new era of lower oil prices“. This article really frames the events going on with OPEC, the price of oil, and what this all means for the global oil industry. OPEC nations need higher oil prices to fund their domestic agendas. Furthermore, with many OPEC nations at political odds with each other, and their relationships further complicated as they each try to gain national market share in a climate with a decreasing demand for oil, cooperation should prove interesting for the Gulf States. Moreover, according to Critchlow, lifting the ban on US crude oil exports is becoming more likely as Washington considers applying more pressure on Russia. Since Russia’s GDP is taking a hit with lower oil prices, removing the ban on US oil exports may act as a one-two punch to Vladimir Putin at a time when Russia is threatening its non-NATO border nations, like the Ukraine and now Finland.

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